Edo’s 2013 budget

Can you really satisfy the people of Edo State? Of course, yes. Aren’t they more demanding than state resources can carry? The answer is in the affirmative. Could it be because to whom much is given, much is expected? Again, yes. The truth is – the people of Edo want more from Governor Adams Oshiomhole despite his overwhelming scorecard in the past four years in office.

Oshiomhole, on his part has vowed to post more mouth-watering dividends. His 2013 budget christened “Taking Edo to the next level” is one among three others before Oshiomhole will call it quits.

Successive governments in the past have had budgets tagged with flamboyant adjectives but unfortunately they hardly yielded the much trumpeted result. Today, the difference is clear. Whereas the budget used to be an opaque instrument; now it’s a self-reliant and fiscally prudent tool.

Edo State is one of the few states where Fiscal Responsibility legislation was passed into law and we all know the import of that. While the state benefits from the 13% derivation fund as a marginal oil producing state, this fiscal advantage does not translate to any significant edge in financial transfers and key indices when compared to other states in the Niger Delta region.

The proposed Budget size for the year is N150,045,377,060 billion. Of this, the sum of N87,407,475,855 billion, representing approximately 60%, is being proposed as Capital Expenditure; while the proposed Recurrent Expenditure is N62,637,901,205 billion, which represents approximately 40% of budget size.

By the above figures, government is sustaining the tradition of putting more funds into capital expenditure, while reducing recurrent expenditure.

The sum of N116, 479,778,045 billion is proposed as recurrent revenue, made up of the following components: Statutory Receipt – N86.51 billion, Internally Generated Revenue – N26.97 billion

The projected capital receipts amount to N64,341,876,840 billion, while there is a projected deficit of N23,065,599,015 billion to be funded through the World Bank Budget Support Facility and additional credit lines.

The Recurrent Component of the 2013 Budget, which is N62,637,901,205 billion, is made up of Personnel Costs – N25.46 billion, Overhead Costs – N16.40 billion and Consolidated Revenue Fund Charges – N20.76 billion

Government is concentrating the bulk of it’s Capital Expenditure on key priority areas. Roads Project is allocated the sum of N33,351,000,000 billion. This will be used to complete ongoing intra and inter-city road projects, in addition to funding new road projects. The designs of these road projects, according to government sources, are ready.

The sum of N 13,293,000,000 billion is proposed for Flood and Erosion Control and Environmental Protection. Of this amount, N8.00 billion is allocated for the execution of projects under the Benin City Storm Water Masterplan. Also, a substantial sum has been earmarked for the continue desiltation and dredging of the Benin Moat.

Similarly, the sum of N2.55 billion is set aside for erosion and flood control infrastructure in Edo Central and Edo North senatorial districts, while the sum of N1.20 billion is proposed for Beautification and Urban renewal projects across the State.

The state owned university, Ambrose Alli University has a provision of N4.82 billion of which N1.02 billion is for capital projects. N4 billion has been provided for construction and renovation tertiary institutions in Edo State. The technical schools reconstruction/renovation has a provision of N500million.

The sum of N6.78 billion has been allocated to the Health Sub-Sector, comprising of N2.8 billion capital projects and N3.98 billion for recurrent expenditure.

Edo people should expect the procurement of rescue ambulances to cover Benin-Auchi, Benin-Ore, Benin-Agbor and Benin-Warri roads at an estimated cost of N30,000,000 million. It is expected that this will complement the on-going Accident and Emergency facility in the new complex at the Central Hospital, Benin City.

The administration has also promised to continue to transform the agriculture sub-sector to ensure increased food and raw material production. In this connection, government plans to provide necessary inputs to farmers and encourage our teeming youth to engage in agricultural activities. The sum of N400 million is proposed for this sub-sector in Year 2013.

Sure, the budget is intended to strengthen the administration’s resolve to galvanize the people of Edo state towards developmental action and make the state competitive economically as well as make it self-reliant.

This is more so as Oshiomhole is sworn to carry out institutional reforms necessary to guarantee and sustain irreversible development. “The thrust of our policies is to achieve concrete development. In this regard, the fiscal governance measures we adopted at the beginning of this administration will be sustained.”

Edo State has been acknowledged as a rapidly developing state in Nigeria by local commentators, investors and development partners. Oshiomhole and his team have creatively managed the state’s resources efficiently to deliver the greatest good to the greatest number of the people. He has worked consciously with the people to deepen their partnership for our overall progress.

The administration must be commended for its efforts at improving the state compared to the work done by its predecessors. But as with everything in life, there is room for improvement if continuity is sustained. The state is blessed with abundant resources which have barely been tapped and transformed to cash-cows. Apart from tax earnings which cannot even sustain its recurrent expenditure, the states’ major financing source is the Federation Account.

Without handouts from the Federal Government, will the state exist in the form it does now? The answer is no. It definitely needs an improvement in federal allocation. Has the state provided a thriving environment for SMEs to play an active role in its economy? It is trying but needs to do more. Is the government investing in physical infrastructure and human capital or is it just maintaining what it has inherited? The state’s performance in education and spending on roads answer this question affirmatively.

To a great extent, leadership is like beauty, it’s hard to define but you know it when you see it. Oshiomhole has proved himself a model in self-confidence, vision, virtue, plain guts, and reliance on blessed impulse. He has learned from everything, more importantly from experience, adversity, and mistakes. He has learned to lead by leading.

There are a lot of goodies for the people of Edo in Oshiomhole’s 2013 budget. All we need to get the best from this government is to simply support the government, criticize constructively, pay our taxes and maintain whatever public infrastructure the government must have succeeded in building in our environment. By so doing, Edo can be said to be on the path of sustainable development.

• Mayaki is a founding member, Coalition for Good Governance and Economic Justice in Africa